The Tim Geithner Capital Hill Show

Tresury Sec. Tim Geithner told the House Appropriations subcommittee money lending institutions pay back to the Treasury Department will be used to bail out other companies.

"We're still in a very challenging economic and financial situation," Geithner said.

Geithner sends a message to Governors, such as Mark Sanford, whom want to use TARP money to pay down their state deficits.

Treasury Secretary Timothy Geithner said the U.S.’s $700 billion financial rescue package can’t be used to aid cities and states facing budget crises.

The law “does not appear to us to provide a viable way of responding to that challenge,” Geithner told a House Appropriations subcommittee in Washington today. Among the hurdles: Money from the Troubled Asset Relief Program is reserved for financial companies, he said.

Geithner left open the possibility of a federal response to California's deficit.

The Treasury Sec. told the Senate Banking Committee lending institutions are getting stronger.

“There are important indications that our financial system is starting to heal,” Mr. Geithner told lawmakers, though he cautioned that it was still too early to talk about an “exit strategy” for the government.

I have several questions. When will the lending institutions be financially solvent enough to stand on their own? How much money being repaid to the Treasury Department? Is the Obama administration willing to reform banks are does it want to maintain the status quo? This is a lot of money we are dealing with and Geithner does not project confidence. Overly-dramatic hand gentures don't count.

ABC News reports consumer confidence dropped 3 points this week. The national unemployment rate in April increased to 8.9 percent. The unemployment numbers are effecting the stock market. The Republican response of tax cuts and spending freeze are not backed by economists. Talking points aren't the answer. Geithner needs to explain what that answer is.